What changed
RBI made interoperability mandatory for full-KYC PPIs (cards and wallets) through authorised card networks and UPI, effective March 31, 2022. The maximum balance for full-KYC PPIs was doubled from ₹1 lakh to ₹2 lakh. Non-bank PPI issuers can now offer cash withdrawal, capped at ₹2,000 per transaction and ₹10,000 per month per PPI, with AFA/PIN authentication and a cooling period.
What it means for you
Banks and non-bank PPI issuers must enable interoperability, increasing competition and customer convenience. The higher limit and cash withdrawal feature make PPIs more attractive for daily transactions, potentially reducing reliance on bank accounts for small payments. Issuers need to invest in UPI and card network integration, and implement robust fraud controls and customer redressal mechanisms.
What you must do
- Integrate full-KYC PPIs with UPI and authorised card networks by March 31, 2022.
- Update system limits to allow maximum outstanding of ₹2 lakh for full-KYC PPIs.
- Enable cash withdrawal for non-bank PPIs with ₹2,000 per transaction and ₹10,000 monthly cap, using AFA/PIN.
- Implement a cooling period for cash withdrawals after PPI opening or reloading.
- Set up customer redressal mechanisms and align with ombudsman schemes for cash withdrawal complaints.
Who it affects
All bank and non-bank PPI issuers, System providers and system participants, Full-KYC PPI holders, Mass transit PPI issuers (exempted), Gift PPI issuers (optional interoperability)
What is the deadline for enabling PPI interoperability?
PPI issuers must enable interoperability for full-KYC PPIs through authorised card networks and UPI by March 31, 2022.
What are the cash withdrawal limits for non-bank PPIs?
Cash withdrawal is limited to ₹2,000 per transaction and ₹10,000 per month per PPI, with AFA/PIN authentication and a cooling period after opening or reloading.
Are mass transit PPIs required to offer interoperability?
No, PPIs for Mass Transit Systems (PPI-MTS) are exempted from the interoperability mandate.